Delaware Supreme Court hears arguments related to SIGA, PharmAthene litigation
On May 31, the Delaware Court of Chancery awarded PharmAthene 50 percent of the net profits generated by SIGA's smallpox antiviral therapeutic Arestvyr and related products over a period of 10 years. SIGA would receive the first $40 million in net profits and a portion of the company's attorney fees and costs. SIGA appealed the decision and PharmAthene cross-appealed, challenging other aspects of the court's ruling.
"We are pleased to have concluded oral arguments before the Delaware Supreme Court, which represents the final stage before a ruling from the Delaware Supreme Court," Eric I. Richman, the president and CEO of PharmAthene, said.
The May 31 final ruling said that after SIGA earns $40 million in net profits, PharmAthene would be paid 50 percent of net profits for a period from the date of entry of the court's final order until 10 years after first commercial sale. SIGA plans to begin selling Arestvyr to the U.S. government in the first quarter of 2013.
The first commercial sale will be deemed to have occurred after the first delivery of, and payment for, the product.
In 2011, the Biomedical Advanced Research and Development Authority awarded SIGA a base contract for the initial procurement of 1.7 million treatment courses of Arestvyr as part of a five-year base contract of $433 million. Approximately $412.5 million is for the purchase of the product.